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Activision Blizzard posts revenue, admits the Fortnite influence

Activision Blizzard reported their earnings last week, revealing that battle royale game Fortnite had had an impact on the company’s profitability.

Despite the multifarious portfolio of the company, which offers a competitive title in virtually every genre, including FPS, sword-and-sorcery sagas, MMORPGs, and most iconically, real-time strategies, Fortnite seem to have had an effect.

We have reported that in addressing this new phenomenon, the company might have reached out to Treyarch and asked to scrap the Single Player mission of Call of Duty Black Ops 4 and work on a battle royale mode, although the lack of a campaign does not necessarily mean a new mode.

With Blizzard running its games for PC and consoles, it is understandable why Fortnite’s success may have had an impact on the company’s finances. In their latest earnings call, Blizzard announced that revenues had increased 14% year-on-year, to $1.97 billion in Q1 2018.

However, Fortnite may have impacted Blizzard/Activision's games in two significant ways. First, Activision reported that active monthly users had shrunk by 13%. Secondly, because Fortnite engages its players successfully, they may be more inclined to allocate part of their gaming budget to in-game goods, including community-crafted skins.

Blizzard also took a question regarding Fortnite’s model which purports that free-to-play games are just as lucrative as the $60-a-pop model championed by Blizzard. The company responded by saying that they believed in the future of purchasable games.

While rumours that Call of Duty: Black Ops 4 will feature the battle royale incarnation continue to swirl, it is worth noting that a China-only battle royale iteration has been introduced in Call of Duty Online.